My First BRRRR and how we did!

[Jake Denning]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,500
Cash invested: $29,200

Purchased this property intially with the intent to flip it. However, after reviewing my goals for 2020 it seemed to be a better fit to just BRRRR it and keep it as my first rental property. I have been able to get an 80% refi on it, and get most of all the cash that is in it back out. I was able to get it rented for $1400/m cashflowing around $450/m with me as the PM for the next 12 months. Glad to have this one finished!

What made you interested in investing in this type of deal?

Bigger Pockets!

Listening to the podcasts I have been intrigued by the BRRRR method. This was the first one and it has worked out well.

How did you find this deal and how did you negotiate it?

This property, I found through our own marketing efforts and mailing the area.

As far as negotiating it, I simply gave the seller a range of what we are likely to pay for it over the phone. Once we were able to confirm that would work then I went to view the property to see what the current condition is and negotiated from there!

How did you finance this deal?

We used 100% private money on this deal.

How did you add value to the deal?

By cleaning up the property and re-doing the entire house.

What was the outcome?

Great outcome! cashflowing well and a good tenant in place.

Lessons learned? Challenges?

I had a lot of challenges with the GC on this one. I used someone outside the norm and was a bit frustrated with the overall work quality of work and the slowness. I will be doing more due-diligence on GC's from here on out.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes real estate agent!